AB542: Bill Text

AB542,31,7 (e) In the event any provision of this compact exceeds the constitutional limits imposed on the legislature of any compacting state, the obligations, duties, powers, or jurisdiction sought to be conferred by that provision upon the commission shall be ineffective as to that compacting state, and such obligations, duties, powers, or jurisdiction shall remain in the compacting state and shall be exercised by the agency thereof to which such obligations, duties, powers, or jurisdiction are delegated by law in effect at the time this compact becomes effective.

AB542, s. 5 Section 5. 605.03 (1) (a) of the statutes is amended to read:

AB542,31,12 605.03 (1) (a) Mandatory coverage. The property fund shall provide protection against fire and extended coverage perils. The coverage shall be at least as favorable as that customarily provided by policies approved by filed with the commissioner for the use of private insurers in insuring comparable property.

AB542, s. 6 Section 6. 607.02 (1) of the statutes is amended to read:

AB542,31,19 607.02 (1) Types of policies permitted. Subject to sub. (2), the life fund may issue to any resident of the state any kind of life insurance with any riders or endorsements thereto that would be filed with the commissioner would approve for issuance by private insurers authorized to do a life insurance business in this state. Coverages may be combined and granted in the same policy by the life fund to the same extent as by a private life insurer.

AB542, s. 7 Section 7. 612.51 (1) of the statutes is repealed.

AB542, s. 8 Section 8. 628.347 (title) of the statutes is amended to read:

AB542,31,22 628.347 (title) Suitability of annuity sales to senior consumers.

AB542, s. 9 Section 9. 628.347 (1) (b) of the statutes is amended to read:

AB542,32,2 628.347 (1) (b) "Recommendation" means advice provided by an insurance intermediary, or an insurer if no intermediary is involved, to an individual senior consumer that results in the purchase or exchange of an annuity in accordance with that advice.

AB542, s. 10 Section 10. 628.347 (1) (c) of the statutes is repealed.

AB542, s. 11 Section 11. 628.347 (2) (a) of the statutes is amended to read:

AB542,32,11 628.347 (2) (a) Except as provided in par. (c), an insurance intermediary, or insurer if no intermediary is involved, may not recommend to a senior consumer the purchase or exchange of an annuity if the recommendation results in an insurance transaction or series of insurance transactions unless the intermediary or insurer has reasonable grounds to believe that the recommendation is suitable for the senior consumer on the basis of facts disclosed by the senior consumer as to his or her investments, other insurance products, and financial situation and needs.

AB542, s. 12 Section 12. 628.347 (2) (b) 1. of the statutes is amended to read:

AB542,32,13 628.347 (2) (b) 1. The senior consumer's financial status.

AB542, s. 13 Section 13. 628.347 (2) (b) 2. of the statutes is amended to read:

AB542,32,15 628.347 (2) (b) 2. The senior consumer's tax status.

AB542, s. 14 Section 14. 628.347 (2) (b) 3. of the statutes is amended to read:

AB542,32,17 628.347 (2) (b) 3. The senior consumer's investment objectives.

AB542, s. 15 Section 15. 628.347 (2) (b) 4. of the statutes is amended to read:

AB542,32,20 628.347 (2) (b) 4. Any other information that is reasonably appropriate for determining the suitability of a recommendation to the senior consumer.

AB542, s. 16 Section 16. 628.347 (2) (c) (intro.) of the statutes is amended to read:

AB542,32,24 628.347 (2) (c) (intro.) An insurance intermediary, or insurer if no intermediary is involved, has no obligation under par. (a) to a senior consumer related to a recommendation if the senior consumer does any of the following:

AB542, s. 17 Section 17. 628.347 (3) (f) 2. of the statutes is amended to read:

AB542,33,3 628.347 (3) (f) 2. Include in its system of supervision an insurance intermediary's recommendations made to senior consumers of products other than annuities offered by the insurer, general agent, or independent agency.

AB542, s. 18 Section 18. 628.347 (5) (a) of the statutes is amended to read:

AB542,33,7 628.347 (5) (a) Order an insurer to take reasonably appropriate corrective action for any senior consumer harmed by a violation of this section by the insurer or the insurer's insurance intermediary.

AB542, s. 19 Section 19. 628.347 (5) (b) of the statutes is amended to read:

AB542,33,11 628.347 (5) (b) Order an insurance intermediary to take reasonably appropriate corrective action for any senior consumer harmed by a violation of this section by the insurance intermediary.

AB542, s. 20 Section 20. 628.347 (5) (c) of the statutes is amended to read:

AB542,33,16 628.347 (5) (c) Order a general agent or independent agency that employs or contracts with an insurance intermediary to sell, or solicit the sale of, annuities to senior consumers to take reasonably appropriate corrective action for any senior consumer harmed by a violation of this section by the insurance intermediary.

AB542, s. 21 Section 21. 628.347 (6) (b) of the statutes is amended to read:

AB542,33,21 628.347 (6) (b) A penalty under par. (a) for a violation of sub. (2) (a), (b), or (d), including a forfeiture, may be reduced or eliminated to the extent provided by rule of the commissioner if corrective action is taken for the senior consumer promptly after the violation is discovered.

AB542, s. 22 Section 22. 628.347 (6) (c) of the statutes is amended to read:

AB542,34,2 628.347 (6) (c) The commissioner may promulgate rules related to the reduction or elimination of penalties for violations of this section on the basis of prompt action taken to correct any harm caused to senior consumers by the violations.

AB542, s. 23 Section 23. 628.347 (7) of the statutes is amended to read:

AB542,34,11 628.347 (7) Record keeping. An insurer and an insurance intermediary, including a general agent and an independent agency, shall maintain, or be able to make available to the commissioner, records of the information collected from a senior consumer and other information used in making a recommendation that was the basis for an insurance transaction for 6 years after the insurance transaction is completed by the insurer, except as otherwise permitted by the commissioner by rule. An insurer may, but is not required to, maintain records on behalf of an insurance intermediary, including a general agent and an independent agency.

AB542, s. 24 Section 24. 628.347 (8) (a) of the statutes is amended to read:

AB542,34,14 628.347 (8) (a) Direct response solicitations in which no recommendation is made based on information collected from the senior consumer.

AB542, s. 25 Section 25. 631.01 (4m) of the statutes is amended to read:

AB542,34,19 631.01 (4m) Rustproofing warranties insurance. An insurer issuing a policy of insurance to cover a warranty, as defined in s. 100.205 (1) (g), shall comply with s. 632.18 and the policy shall be on a form approved by the commissioner under s. 631.20.

AB542, s. 26 Section 26. 631.20 (1) (a) of the statutes is amended to read:

AB542,35,2 631.20 (1) (a) No form subject to s. 631.01 (1), except as exempted under par. (c), sub. (1g), or s. 631.01 (2) to (5) or by rule under par. (b), may be used unless it has been filed with and approved by the commissioner and unless the insurer certifies that the form complies with chs. 600 to 655 and rules promulgated under chs. 600 to 655. It is deemed approved if it is not disapproved within 30 days after filing, or within a 30-day extension of that period ordered by the commissioner prior to the expiration of the first 30 days.

AB542, s. 27 Section 27. 631.20 (1) (c) of the statutes is created to read:

AB542,35,6 631.20 (1) (c) Subject to sub. (1m), a form first used and not already filed under par. (a) on or after the effective date of this paragraph .... [revisor inserts date], is exempt from par. (a) except for any of the following:

AB542,35,7 1. A form subject to s. 655.24 (1).

AB542,35,8 2. A form for a worker's compensation policy.

AB542,35,9 3. A form for a Medicare replacement policy or a Medicare supplement policy.

AB542,35,11 4. A form for a long-term care insurance policy, including a form for a nursing home or home health care policy.

AB542,35,12 5. A form filed under ch. 149.

AB542,35,16 6. A form issued by an insurer ordered by the commissioner under s. 601.41 (4) to file forms under par. (a). The commissioner may require an insurer to file forms under par. (a) to secure compliance with the law, including if the commissioner determines that the insurer violated sub. (1m).

AB542,35,19 7. A form that includes an appraisal or arbitration provision not specifically authorized by rule. The entire form, including the appraisal or arbitration provision, is subject to par. (a).

AB542,35,20 8. A form that contains a clause subject to s. 631.21, but only as to the clause.

AB542,35,21 9. A form subject to s. 618.41 (6m).

AB542,35,22 10. A warranty contract form.

AB542,35,24 11. A form required to be filed under par. (a) by a rule promulgated by the commissioner.

AB542, s. 28 Section 28. 631.20 (1g) of the statutes is created to read:

AB542,36,5 631.20 (1g) Exempt if approved by commission. A form for a product, as defined in s. 601.58 (2) (k), that is approved by or self-certified to, and not disapproved by, the Interstate Insurance Product Regulation Commission is exempt from subs. (1) (a) and (1m) (a), unless otherwise provided by a rule promulgated by the commissioner under s. 601.58.

AB542, s. 29 Section 29. 631.20 (1m) of the statutes is created to read:

AB542,36,11 631.20 (1m) Use of certain forms. (a) Except as exempted under sub. (1g) or s. 631.01 (2) to (5) or by a rule promulgated by the commissioner, an insurer may not, on or after the effective date of this paragraph .... [revisor inserts date], use a form that is exempt from sub. (1) (a) under sub. (1) (c) unless the insurer does all of the following:

AB542,36,12 1. Files the form with the commissioner 30 days before its use.

AB542,36,14 2. Files the form in the manner and format, and with the attachments, prescribed by the commissioner.

AB542,36,17 3. Certifies as required under par. (b) that the form complies with chs. 600 to 655 and rules promulgated under chs. 600 to 655. The commissioner may require an insurer to include specific compliance certifications.

AB542,36,22 (b) An insurer shall provide the certification under par. (a) 3. in the form prescribed by the commissioner. The certification shall be executed by a person who is an officer of the insurer and who is responsible for the form that is the subject of the filing. No insurer may file, and no insurer's officer may execute, a false certification.

AB542, s. 30 Section 30. 631.20 (2) (intro.) of the statutes is amended to read:

AB542,36,25 631.20 (2) Grounds for disapproval. (intro.) The commissioner may disapprove a form under sub. (1) (a) or (3) upon a finding:

AB542, s. 31 Section 31. 631.20 (3) of the statutes is amended to read:

AB542,37,7 631.20 (3) Subsequent disapproval. Whenever the commissioner finds, after a hearing, that a form approved or deemed to be approved under sub. (1) (a) would, a form filed under sub. (1m), or a form subject to subsequent disapproval under s. 601.58 (14) should be disapproved under sub. (2) if newly filed, the commissioner may order that on or before a date not less than 30 nor more than 90 days after the order the use of the form shall be discontinued or appropriate changes shall be made.

AB542, s. 32 Section 32. 631.20 (6) (title) of the statutes is amended to read:

AB542,37,9 631.20 (6) (title) Approved form which Form that violates statute or rule.

AB542, s. 33 Section 33. 631.20 (6) (a) of the statutes is renumbered 631.20 (6) (a) (intro.) and amended to read:

AB542,37,13 631.20 (6) (a) (intro.) The penalties under s. 601.64 (3) to (5) may not be imposed against an insurer for using any of the following:

AB542,37,17 1. Using a form that does not comply with a statute or rule, including a rule or uniform standard adopted by the Interstate Insurance Product Regulation Commission, if the statute or rule was in effect on the date the form was approved or deemed to be approved under sub. (1) (a) or s. 601.58.

AB542, s. 34 Section 34. 631.20 (6) (a) 2. of the statutes is created to read:

AB542,37,20 631.20 (6) (a) 2. The use of a form solely based on a finding of the commissioner that the content of the form is misleading under s. 628.34 (1).

AB542, s. 35 Section 35. 631.20 (6) (b) of the statutes is amended to read:

AB542,38,2 631.20 (6) (b) Use An insurer's use of a form that does not comply with a statute or rule which, including a rule or uniform standard adopted by the Interstate Insurance Product Regulation Commission, that takes effect after the date the form was approved or deemed to be approved under sub. (1) (a) or s. 601.58 is a violation of the statute or rule, and the penalties under s. 601.64 may be imposed against the insurer using the form.

AB542, s. 36 Section 36. 631.20 (6) (c) of the statutes is created to read:

AB542,38,8 631.20 (6) (c) Except as provided in par. (a) 2., an insurer's use of a form filed under sub. (1m) that violates chs. 600 to 655 or rules promulgated under chs. 600 to 655 is a violation of the statute or rule, regardless of whether the form has been subsequently disapproved under sub. (3). The insurer is subject to the penalties and remedial orders provided under chs. 600 to 655, including ss. 601.41 (4) and 601.64.

AB542, s. 37 Section 37. 631.21 (1) (intro.) of the statutes is amended to read:

AB542,38,13 631.21 (1) Required approval. (intro.) Despite the filing or general approval of a form under s. 631.20, the following clauses are not approved may not be used even if contained in the form unless the commissioner gives explicit approval to them:

AB542, s. 38 Section 38. 631.23 (1) (intro.) of the statutes is amended to read:

AB542,38,19 631.23 (1) Promulgation of clauses. (intro.) The commissioner may not promulgate mandatory uniform clauses that preclude an insurer from filing its own forms for approval under s. 631.20; the commissioner may only disapprove such forms on the basis of the criteria stated in that section. Subject thereto, the commissioner may promulgate authorized clauses by rule upon a finding that:

AB542, s. 39 Section 39. 631.36 (1) (a) of the statutes is amended to read:

AB542,38,24 631.36 (1) (a) General. Except as otherwise provided in this section or in other statutes or by rule under par. (c), this section applies to all contracts of insurance based on forms which that are subject to filing and approval under s. 601.58 or 631.20 (1) (a).

AB542, s. 40 Section 40. 632.32 (4) (intro.) of the statutes is amended to read:

AB542,39,7 632.32 (4) Required uninsured motorist and medical payments coverages. (intro.) Every policy of insurance subject to this section that insures with respect to any motor vehicle registered or principally garaged in this state against loss resulting from liability imposed by law for bodily injury or death suffered by any person arising out of the ownership, maintenance, or use of a motor vehicle shall contain therein or supplemental thereto the following provisions approved by the commissioner:

AB542, s. 41 Section 41. 632.45 (2) of the statutes is amended to read:

AB542,39,13 632.45 (2) Amendments. Any contract under sub. (1) shall state whether it may be amended as to investment policy, voting rights, and conduct of the business and affairs of any segregated account. Subject to any preemptive provision of federal law, any such amendment is subject to filing and approval under s. 631.20 and approval by a majority of the policyholders in the segregated account.